Citi's Earnings Disappointment Extends to CEO

By

Matthias Rieker

Updated Jan. 17, 2013 12:00 p.m. ET

Citigroup Inc.'s new chief executive, Michael Corbat, in his first quarterly earnings announcement, unveiled results that fell far short of forecasts and told investors to lower their expectations for the bank's return on assets.

The bank's results were hit by a slew of charges—some expected, some unexpected. A surprise was Citi's $1.3 billion in legal charges, which included $1 billion in reserves for any potential regulatory action and other legal issues. Citi Chief Financial Officer John Gerspach revealed that a...